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SESSION 202 Monday, November 2, 11:30am - 12:30pm Track: Continual Service Improvement Lean IT as a Practical CSI Methodology Troy DuMoulin VP, Research and Product Development, Pink Elephant [email protected] Session Description Simply put, Lean IT improvement methods focus on achieving customer value while eliminating wasted steps and optimizing process value streams. While ITIL does a good job of describing the concept of continual service improvement, Lean takes it one step further to give you practical and repeatable tools to accomplish this important goal. This session will explain Lean major guiding principles and improvement methods and how they used to enable continual service improvement. Attendees will walk away with an understanding of what Lean IT is and why they should never design or improve another process without considering it through a Lean lens. (Experience Level: Advanced) Speaker Background Troy DuMoulin is a leading ITIL and IT governance authority with extensive experience in executive IT management consulting. Troy is an ITIL Expert and has led many ITSM programs with regional and global scope. He’s a frequent speaker at IT management events and is a contributing author to multiple ITSM and lean IT books, papers, and official ITIL publications.

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Page 1: Lean IT as a Practical CSI Methodology - Professional …professionalprograms.net/downloads/2015_FUSION/PDF/Session202.pdf · Lean IT as a Practical CSI Methodology Troy DuMoulin

SESSION 202 Monday, November 2, 11:30am - 12:30pm

Track: Continual Service Improvement

Lean IT as a Practical CSI Methodology

Troy DuMoulin VP, Research and Product Development, Pink Elephant [email protected]

Session Description

Simply put, Lean IT improvement methods focus on achieving customer value while eliminating wasted steps and optimizing process value streams. While ITIL does a good job of describing the concept of continual service improvement, Lean takes it one step further to give you practical and repeatable tools to accomplish this important goal. This session will explain Lean major guiding principles and improvement methods and how they used to enable continual service improvement. Attendees will walk away with an understanding of what Lean IT is and why they should never design or improve another process without considering it through a Lean lens. (Experience Level: Advanced)

Speaker Background Troy DuMoulin is a leading ITIL and IT governance authority with extensive experience in executive IT management consulting. Troy is an ITIL Expert and has led many ITSM programs with regional and global scope. He’s a frequent speaker at IT management events and is a contributing author to multiple ITSM and lean IT books, papers, and official ITIL publications.

Page 2: Lean IT as a Practical CSI Methodology - Professional …professionalprograms.net/downloads/2015_FUSION/PDF/Session202.pdf · Lean IT as a Practical CSI Methodology Troy DuMoulin

Lean IT as a Practical CSI Methodology

Troy DuMoulin VP, Research, Innovation & Product Development

Pink Elephant

Welcome & Agenda 1. Applying Lean To IT Value Streams

2. The Impact Of Culture On Flow

3. The Importance Of standard Work &

Incremental Improvement

4. Working Smarter Not Harder

Objective

Understand how IT organizations may adopt

proven Lean IT assessment and improvement

practices to identify waste, improve efficiency

and the overall speed of execution.

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Lean Is

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A Strategy for Operational Excellence based on Clearly Defined

Values to Engage People in Continuously Improving Safety,

Moral, Quality, Cost and Productivity

Jeffery Liker – Lean Leadership At Every Level

RISK GAP Lack of availability,

performance, reliability, quality

Process Requirements Increasing number of products and services

Increasing rate of change

Increasing complexity/data interdependency

Increased speed and efficiency

Increased speed to market

Reduced costs

IT Process Capabilities Silo/Fragmented/Redundant processes

Lack of integration, automation

Lack of visibility

Operating as a mature IT Service Provider requires consistent management processes across silos!

The “Risk Gap” For Business Growth Goals

Scalability of Management Processes Over Time

Increa

sed B

usin

ess Need

Of IT Services

4

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Lean Is A Way Of Thinking & Acting

Lean thinking and acting is all about:

• Increasing customer value • Eliminating waste • Management as facilitator • Involvement of all employees • Continual Improvement

“Preserving value with less work.”

Stability Robustness

5S Kaizen

Standard Working

Heijunka

Just in Time Jidoka

Quality

Delivery Costs

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What Is Lean IT?

“Lean IT is the extension of lean manufacturing and lean services principles to the development and management of information technology products and services. Its goal

is to continuously improve the value delivered by IT organizations to their customers and the professionalism

of IT people.”

Source: Lean IT Association

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Copyright © 2015 Lean IT Association

Page 5: Lean IT as a Practical CSI Methodology - Professional …professionalprograms.net/downloads/2015_FUSION/PDF/Session202.pdf · Lean IT as a Practical CSI Methodology Troy DuMoulin

The Nature Of Change

Kaizen – Incremental Change

Kaikaku – Large Step Change

Kakushin – Transformational Change

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The Importance of Standard Work

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Kai

zen

Kai

zen

Standard Work

Standard Work

Without a standard there can be no Kaizen

Standard work must evolve and change

Standard work is the basis for stabilization

Standard work removes subjectivity

Without a standard it is not possible to understand if the change is an improvement

Standard work sustains the Kaizen outcomes

Standard work establishes the best (fit for purpose) methods and

sequence for each process and each stakeholder

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Process: Series Of Actions Triggered By Customer Demand

A series of actions that must be performed correctly in the correct sequence at the correct time to create value for a customer

On an abstract level, organizations have three processes:

Design: Concept to launch – product and process development

Delivery: From order intake to product delivery

Support: Customer use during life of the product

Lean Process Characteristics

Primary Processes

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IT Value System – Partner Network

Customer Engagement

Plan/Build Management

Operations Excellence

Governance

Continual Improvement

Monitoring Reporting

Service/Process Improvement – Efficiency/Effectiveness

Strategy/Planning Demand

Resource Capacity Priorities/Scheduling Process Ownership

Compliance Financial

Business Relationship Mgmt. Demand Management

Service Catalog

Strategy/Design/Transition Operational Goal: Manage service operations to maximize customer outcomes and minimize cost

Operational Goal: Manage the risk and resources to deliver quality, cost-effective services and service enhancements

Operational Goal: Understanding and managing customer needs, requirements and expectations to solve business problems and deliver value

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Velocity Vs. Agility

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Velocity = Speed With Direction!

Is Enterprise IT A Myth?

Demand Plan Build Run

The Challenge Of DevOps & Silo Mentality

Time & Money Stability & Control

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Page 8: Lean IT as a Practical CSI Methodology - Professional …professionalprograms.net/downloads/2015_FUSION/PDF/Session202.pdf · Lean IT as a Practical CSI Methodology Troy DuMoulin

Transition Planning

Change R + DM SACM T + Validation Evaluation Knowledge

Strategy Management

Demand Portfolio Finance

Factory Store Front Delivery & Support

BRM

Catalog

Request Fulfillment

Service Desk

Incident Mgmt.

Application & Infrastructure Maintenance

Design Coordination

Security Availability Capacity ITSCM Supplier SLM, SCAT

Project Portfolio

Operations

Event Incident Request Problem Access

Bu

siness Services

Ap

plicatio

n Layer

Infrastru

cture Layer

Data Layer

Professional Services

Data Center Environment

Network Facilities

Techn

ical Service

s

Lessons Learned

Charter

Initialize

Plan/Build

Implement

Stabilize

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Create continuous flow in production with the Just-in-Time approach and reduce peak and low volumes

Lean – Customer Value At The Center

Assess if all the activities in the process add value in the eyes of the customer

Demand triggers the process chain in order to reduce stock

First time right Focus on quality and prevention of defects

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Page 9: Lean IT as a Practical CSI Methodology - Professional …professionalprograms.net/downloads/2015_FUSION/PDF/Session202.pdf · Lean IT as a Practical CSI Methodology Troy DuMoulin

The Problem – The Dualistic Nature Of IT Cultures

The concept that the IT Organization is conflicted by seemingly antagonistic goals

Provide stable, secure and reliable IT Services

Respond quickly to

urgent business needs

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Proactive Problem Solving

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Reactive vs. Proactive Problem Solving

Lean is not just about hunting down waste and reacting to the crisis of the day. Its goal is to move an organization to a desired state through relentless

problem solving and incremental improvement.

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DMAIC CSI Methodology

Control

Improve Analyze

Define

Measure

IMPROVE MEASURE DEFINE CONTROL ANALYZE

Ishikawa Quick Wins (Identify)

Quick Wins (Implement)

VOC

SIPOC (Current)

SIPOC (Revised)

5 Why’s VSM (Current)

VSM (Future)

Pareto

KPIs (Monitor)

KPIs

CTQ KPIs

(Updated)

Problem Solving Methodology

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Preserving Value With The Least Effort

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The 3 M’s Of Waste

• Muda – Unnecessary, Non Value

• Mura – Variation, Variance

• Muri – Over Burdened

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Value-Add: Work that adds Value in the eyes of the customer that they are willing to pay for: Application development Server Maintenance

Non-Value-Add: Work that does not add Value for the customer or the business: Redundant work Solving IT incidents Doing more than required

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Optimize

Minimize

Remove

Lean – Three Types Of Activities

Necessary Non-Value-Add: Work that is not “Value-Add” but must be done: Recruiting staff Finance and accounting Application testing

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Flow Killers

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• Defects/Incidents

• Re-work

• Problems

• Variation

• In-flexibility

• Over-burden

• Over production

• Waiting

• Over processing

• Bottlenecks

Examples Of IT Waste

Multiple Service Desks all with their own tools and separate processes

Massive amounts of wasted server capacity due to a lack of Capacity and

Demand Management

Redundant and duplicate IT Management tools being purchased by various IT

departments in the same organization

Redundant IT groups and stealth data centers being built by “independent” parts of the business

A willingness to solve the same Incidents 1000s of times without looking at the

root of the problem

Multiple Change Management processes due to political boundaries

Losing track of tens of thousands of dollars of IT assets due to poor tracking

controls and inventory processes

Supplier contracts expiring without knowledge until an Incident occurs

A willingness to supply multiple/duplicate versions of the same services

The total lack of ability to provide visibility into the cost of an IT service

The list goes on...

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Lean IT Association

What Do I Do Tomorrow?

• Troy’s Blog: blogs.pinkelephant.com/troy

– PR 63 – Using Lean Visual Management For ITSM

– PR 59 – Lean IT – Gaining Sr. Leadership Buy In

– PR 18 – TOC, LEAN & Six Sigma The Three CSI Sisters

– Using Lean Principles For Effective CSI

• Education:

• Lean IT Foundation: Using Lean Principles For Continual Service Improvement

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Page 14: Lean IT as a Practical CSI Methodology - Professional …professionalprograms.net/downloads/2015_FUSION/PDF/Session202.pdf · Lean IT as a Practical CSI Methodology Troy DuMoulin

Combining Lean IT & ITSM To Enable Grass Roots Continual Service Improvement © Pink Elephant, 2015. All Rights Reserved.

Questions?

Troy DuMoulin

[email protected]

blogs.pinkelephant.com/troy

@TroyDuMoulin

APMG-International Lean IT™ is a trade mark of The APM Group Limited.

Thank you for attending this session.

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